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Home , Churchill Falls, George River (Quebec), Lake Melville, Smallwood Reservoir

Lower Churchill Hydroelectric Generation Project

A description of the proposed project and its potential effects on the environment Nipishish Nipishish Lake Lake Red WineRed River Wine River SmallwoodSmallwood Reservoir

Grand GrandLake Lake NorthNorth West West ChurchillChurchill Falls Falls River River SheshatshiuSheshatshiu ChurchillChurchill Falls Falls GeneratingGenerating Station Station HappyHappy Valley Valley - - GooseGoose Bay Bay Mud LakeMud Lake MuskratMuskrat Falls Falls

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m m a a n n Gull IslandGull Island e e K K Site Site ChurchillChurchill River River

QUEBECQUEBEC DominionDominion Lake Lake MinipiMinipi InterconnectingInterconnecting Transmission Transmission Line Line Lake Lake

LABRADORLABRADOR Lower ChurchillLower Churchill River Valley River Area Valley Area

Lower ChurchillLower Churchill Watershed Watershed QUEBECQUEBEC INSET INSET 0 0 25 25 50 50

KilometresKilometres Nipishish Nipishish Lake Lake Red WineRed River Wine River SmallwoodSmallwood Reservoir Reservoir

Grand GrandLake Lake NorthNorth West West ChurchillChurchill Falls Falls River River SheshatshiuSheshatshiu ChurchillChurchill Falls Falls GeneratingGenerating Station Station HappyHappy Valley Valley - - Conceptual Illustration of the Generation Station GooseGoose Bay Bay Mud LakeMud Lake MuskratMuskrat Falls Falls

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m m a a n n Gull IslandGull Island e e K K Site Site ChurchillChurchill River River

QUEBECQUEBEC DominionDominion Lake Lake MinipiMinipi InterconnectingInterconnecting Transmission Transmission Line Line Lake Lake

LABRADORLABRADOR Lower ChurchillLower Churchill River Valley River Area Valley Area

Lower ChurchillLower Churchill Watershed Watershed QUEBECQUEBEC INSET INSET 0 0 25 25 50 50

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Conceptual Illustration of the Gull Island Generation Station Nalcor has written this Plain Language Summary, which provides a short description of the Project, and describes how the Project will affect the environment. It also explains what Nalcor plans to do if it receives approval from the Government of Newfoundland and and the Government of to build the Project. The summary is available in: English, French, -aimun (Labrador and dialects), and Inuttitut. Table of Contents

Introduction...... 1 Consultation...... 5 Need and Benefits of The Project...... 7 The Project...... 9 Dams And ...... 9 Generation Facilities...... 10 Spillway...... 11 Transmission Line...... 11 Other Facilities...... 12 Building The Project...... 13 Generation Facilities Construction...... 14 Reservoir Clearing And Filling...... 14 Transmission Line...... 15 Rehabilitation...... 15 Operating and Maintaining The Project...... 16 Environmental Assessment...... 17 Natural and Human Environment Today...... 20 Climate...... 20 The River...... 21 Plants...... 22 Wildlife...... 22 Economic Development...... 23 Adjacent Communities...... 23 Land And Resources Use...... 24 Cultural And Heritage Resources...... 25 Effects of The Project on The Natural and Human Environment...... 26 Climate...... 27 The River...... 28 Plants...... 31 Wildlife...... 32 Economic Development...... 35 Adjacent Communities...... 36 Land and Resources Use...... 37 Cultural and Heritage Resources...... 38 Monitoring and Follow-Up...... 39 Conclusions...... 40

Introduction

Nalcor Energy (Nalcor) is a company owned by the Province of Newfoundland and Labrador. Nalcor is proposing to build the Lower Churchill Hydroelectric Generation Project (the Project) on the lower Churchill River in Labrador. The purpose of the Project is to generate electricity. The Project will involve building power generation facilities and dams at two locations, creating two reservoirs, and building transmission lines between the two facilities and to existing transmission lines at .

Nalcor is committed to providing safe, reliable and dependable electricity to its customers and is committed to helping sustain a diverse and healthy environment for present and future generations. It shows this commitment by doing its business in a As part of the Project planning, Nalcor way that respects the environment, such as is committed to avoiding and minimizing avoiding pollution, doing things in ways that harm to the environment, and enhancing cause as little damage to the environment the benefits of the Project. Nalcor will do as possible, and following all environmental this in a number of ways. These include: laws and regulations. • meeting regulatory requirements Before construction starts, Nalcor will prepare for environmental protection; Environmental Protection Plans that workers • designing and implementing the will be required to follow. These Plans will Project so that it avoids or reduces provide detailed instructions explaining how potential environmental effects; and work is to be done so that the environment • designing the Project so that is protected. it enhances positive effects.

1 Introduction

Nalcor cannot build the Project unless it receives approval from both the Government of Canada, and the Government of Newfoundland and Labrador. To receive approval Nalcor must first go through a review of the Project. This process is called an environmental assessment.

The environmental assessment process started in December 2006, when Nalcor submitted the Project Registration/Description Document to the governments. The governments then decided that the Project should be reviewed by a Joint Review Panel. The Joint Review Panel is a group of people who were chosen by the governments but act independently to examine the environmental effects of the Project, determine how those effects can be mitigated, and consider comments from government departments, aboriginal groups, non governmental organizations and the general public. The governments also issued Environmental Impact Statement Guidelines which provided instructions for what to include in the Environmental Impact Statement.

2 Introduction

Nalcor prepared an Environmental Impact Statement which provides the information the governments need to decide if the Project should be allowed to proceed. The Environmental Impact Statement was provided to the Joint Review Panel and released for public review in February 2009. The Environmental Impact Statement has been reviewed by the Joint Review Panel and many other people, organizations and government agencies, who have asked for more information. Nalcor provided answers to those questions through a number of Information Responses. When the Panel is satisfied that it has enough information, it will hold public hearings where people can make presentations to the Panel and ask further questions about the Project. The Panel will then make recommendations to the governments’ ministers about whether the Project should be allowed to happen, and if so under what conditions.

More information about the Project is available at: nalcorenergy.com/lowerchurchillproject

The full Environmental Impact Statement and other reports that formed the submission to the Joint Review Panel can be found at: www.ceaa.gc.ca/050/05/documents-engcfm?evaluation=26178&type=9

3 Introduction

The Environmental Impact Statement and other studies that are part of Nalcor’s submission to the Joint Review Panel are thousands of pages long and many of them are written by highly specialized engineers and scientists using technical language.

The Canadian Environmental Assessment Agency (CEAA) website www.ceaa-acee.gc.ca contains documents relating to the environmental assessment process for the . The CEAA website contains documents under the categories of: News Releases/Public Notices, Hearing Documents, Panel Documents, Proponent Documents, Federal Government Documents, Provincial Government Documents, Public Comments/Submissions/Requests and Other Documents.

4 Consultation

Nalcor wants to know what people think about the Project, how it will affect them, and what concerns they have about the Project. Nalcor has held meetings and open houses with many people and organizations. There is also a Project office in Happy Valley-Goose Bay to provide information to people who live near the Project. A special effort has been made to consult with people who live close to the Project – Happy Valley-Goose Bay, , , Mud Lake, , Churchill Falls, western Labrador and Natuashish. Nalcor has also actively engaged in discussion with the Labrador Innu, Labrador , Labrador Metis, and Quebec Innu.

Consultation has been done in different ways. Some methods of consultation are particularly useful for Nalcor to provide information to people, such as the Project website (nalcorenergy.com/lowerchurchillproject), electronic news notification, Project newsletter, information sheets, speeches and press releases. Other methods are more effective for people to give information back, so Nalcor has participated in many technical workshops, open house meetings, and one- on-one meetings.

5 Consultation

The questions people asked and the suggestions they have given have been used in many ways. The Environmental Impact Statement Guidelines required the Environmental Impact Statement to address issues that people said mattered to them. Local knowledge and Aboriginal knowledge were used by Nalcor Energy’s consultants to learn about the environment where the Project will be located. Nalcor Energy has made a number of commitments that respond to concerns that people have expressed, for example, plans to provide training, and to consider hiring local people, and how the Project may provide business opportunities to local businesses.

Nalcor has been and remains actively engaged with the Aboriginal communities in the region and continues to provide opportunities for the groups to participate in consultation on this Project.

6 Need and Benefits of the Project

One of the benefits of using electricity generated by hydropower is that it can reduce the need to produce electricity by other means such as burning fossil fuels like fuel oil, coal or natural gas. Burning fossil fuels releases substances called “greenhouse gases”, which have been associated with climate change. Governments, industry and individual people are working to reduce the amount of greenhouse gases created during power generation, and hydroelectricity is one of the most effective ways to do that.

The Churchill River is a very important source of hydroelectric energy. Power is currently being generated Nalcor is proposing to develop on the river by the Churchill Falls Power Station. It has additional power on the Churchill a capacity of 5,428 MegaWatts of power. River for the following reasons: • to provide electricity for future The Project will generate an additional 3,074 electric power needs in the MegaWatts of power. That is enough power to supply Province of Newfoundland electricity to hundreds of thousands of homes year and Labrador; round. The Project can provide a long-term, reliable source of renewable energy, contribute to provincial • to provide electricity which could revenues, and provide employment and business be sold outside the Province; and opportunities. • to develop the Province’s natural resource assets.

7 Need and Benefits of the Project

The Project will cost more than $6 billion to build and it will create many jobs. Overall, Project construction is expected to enhance provincial income by $2 billion. This accounts for the incomes of workers and businesses who work directly for the Project, as well as those who have jobs providing services to people working on the Project.

Work is measured in “person-years”. One person-year is the amount of work one person does in 12 months. The Project will generate more than 15,000 person-years of direct employment during construction. Although the number of jobs per year will vary, there will be an average of 1,500 jobs per year for 10 years over the construction of the Project.

8 The Project

The Project will involve building power generation facilities and dams at two locations, creating two reservoirs, and building transmission lines between the two facilities and to existing transmission lines at Churchill Falls.

Dams and Reservoirs The Lower Churchill Generation Project will dam the Churchill River at two locations – Gull Island and Muskrat Falls.

At Gull Island, the dam will be 99 metres high and 1,315 metres long. The dam will create a reservoir that reaches 232 kilometres upstream of the dam, almost to the tailrace of the Churchill Falls Power Station.

At Muskrat Falls, the dam will be built in two sections. The north dam will be 32 metres high and 432 metres long, and the south dam will be 29 metres high and 325 metres long. These dams will create a reservoir that will reach 59 kilometres upstream to the tailrace of the Gull Island facility.

9 The Project

Transmission Line Powerhouse Dam

Reservoir Control Gate

Trashracks

FLOW Switchyard Transformers

Intake

Penstock

Generator

Turbine Tailrace JW-STJ-800

Generation Facilities The Lower Churchill Generation Project will have two generation stations – one at Gull Island, and one at Muskrat Falls. The Gull Island station is upstream of Muskrat Falls, and will have a capacity to generate 2,250 MegaWatts. Muskrat Falls will be able to generate 824 MegaWatts.

Each generating station will have a large steel and concrete building called a powerhouse where the electricity will be generated. The water stored in the reservoirs will be directed to the power house by an approach channel. The flowing

10 The Project

water will turn turbines located in the powerhouse. The turbines will be connected to generators. These generators will create electricity. Once the water leaves the powerhouse it will enter the tailrace and return back to the river.

The electricity from each powerhouse will then be sent to a set of transmission lines that connect Muskrat Falls, Gull Island and Churchill Falls switchyards.

Spillway A spillway is also an important component of a generating facility. The spillway will be used to bypass water around the powerhouse when it is not needed for generating electricity. It may also be used when flows are higher than what can be safely passed through the powerhouse. There will be a spillway at both the Gull Island and Muskrat Falls generating facility.

Transmission line Transmission lines will be built to transmit the electricity from the generating stations to Churchill Falls. Lattice-type steel structures will be used and require a cleared right-of-way of approximately 80 metre wide. The 203 kilometre line between Gull Island and Churchill Falls will have towers that stand about 50 metres high, and they will be about 500 metres apart. The 60 kilometre line between Muskrat Falls and Gull Island will have towers about 40 metre high, and towers will be about 380 metres apart. The lines will be next to an existing transmission line that has been in operation for about 30 years.

11 The Project

Other Facilities In addition to the main components of the Project, a number of other facilities will be required. • Roads: About 345 kilometres of temporary roads will be needed to provide road access to the building sites and to reach the area which will be cleared for the reservoirs. The temporary access roads will be flooded when the reservoir is filled, or rehabilitated after the Project has been built. About 30 kilometres of permanent roads will be constructed or upgraded to provide access from the Trans Labrador Highway to Gull Island and Muskrat Falls. • Bridges: A temporary construction bridge will be built upstream of the Gull Island site to provide access during construction. This bridge will be removed after the Project has been built. Other temporary bridges will also be built along the access roads at any stream crossings. These bridges will be removed after the Project has been built. • Temporary docks: Until the temporary bridge is ready, small passenger boats and a cable ferry will be used to transport workers, equipment and supplies across the Churchill River at the Gull Island site. Temporary docks will be provided on both sides of the river, and removed after the bridge becomes useable. • Work camps: Construction workers will be provided with accommodation at both the Gull Island and Muskrat Falls construction sites. The camp at Gull Island will provide for about 2,000 people and the one at Muskrat Falls will be about half that size. Both camps will be removed after the Project has been built. • Borrow pits and quarry sites: Rock and gravel will be needed to build the generation facilities, dams, and other Project facilities. After the borrow pits and quarry sites are no longer needed, they will be allowed to re-grow naturally. • Spoil areas: During construction, rock and soil will need to be removed from some of the sites. This waste material will be placed in piles in selected areas that are called spoil areas. When the Project is built, the piles of rock and soil in the spoil areas will be shaped to make them stable and to control erosion, and plants will be allowed to grow naturally.

12 Building the Project

Nalcor expects the Project will take about 10 years to build. Construction at the Gull Island facility will take about seven years. Construction at the Muskrat Falls facility will take about a further three years. Peak employment will happen in about year six of the Project, when over 2,000 workers will be required.

Nalcor will require its contractors and subcontractors to give priority consideration to hiring qualified, experienced personnel who live adjacent to the Project. Nalcor will also encourage Aboriginal people, women, visible minorities and persons with disabilities to participate in the Project.

A work camp will be provided at Gull Island and Muskrat Falls. Buses will be used to move workers between Happy Valley-Goose Bay and the work camps.

13 Building The Project

Generation Facility Construction Construction of the generation facility at Gull Island is expected to take about seven years. Construction will include developing and improving the access road from the Trans Labrador Highway and installing a temporary construction bridge. Work camps will be built. A temporary dam will be constructed to divert the river around the construction site through diversion tunnels while the main dam is being built. A spillway, intake, penstocks, powerhouse, and switchyard will also be constructed. The final steps will be filling the reservoir, removing temporary structures and rehabilitating the site. Construction at Muskrat Falls will be similar, although somewhat simpler because the facility will be smaller than Gull Island and diversion tunnels will not be required.

Conceptual Illustration of the Gull Island Generation Station

Reservoir Clearing and Filling Trees will be cleared if they are tall enough to be hazards to boats using the reservoir, or if they will be close enough to the edge of the reservoir that they are likely to fall into the water as the new shoreline becomes established. The Muskrat Falls Reservoir will be almost completely cleared. In the Gull Island Reservoir, tree clearing will form a wide ring that follows the new shoreline. In some areas tree clearing will not be possible because of steep slopes.

14 Building The Project

Once the dams are built, the reservoir will fill with water. Depending on the time of year, it will take up to approximately 45 to 60 days for the Gull Island Reservoir to fill, and about 15 to 20 days for the Muskrat Falls Reservoir to fill.

Transmission Line Construction of the transmission line begins with clearing all vegetation taller than one metre along the right-of-way. After the right-of-way is cleared, building material will be distributed, tower foundations will be installed, towers will be assembled and erected, and the conductor will be strung between the towers. It is expected there will be a number of transmission line crews working in different areas along the line at the same time, using portable accommodation and camp facilities.

Rehabilitation When construction facilities such as work camps, temporary roads and borrow areas are no longer required, the sites will be rehabilitated. As much as possible, the objective for site rehabilitation will be to stabilize the site so that plants can grow back naturally. Detailed site-specific rehabilitation plans will be developed before construction begins.

Conceptual Illustration of the Muskrat Falls Generation Station

15 Operating and Maintaining the Project

During the operations and maintenance phase of the Project, Nalcor expects that about 40 people will be employed to look after the operation of the Gull Island and Muskrat Falls generation facilities and the transmission lines. It is expected that the generation facilities will be operated from St. John’s, from the same operations centre that Nalcor Energy uses to operate its other electrical generation projects. About 20 additional people will be working at the operations centre in St. John’s.

Maintenance crews located in Happy Valley-Goose Bay will conduct routine maintenance on the Gull Island and Muskrat Falls facilities. The transmission lines right-of-way will require periodic maintenance (likely every eight to ten years) to cut back vegetation. This will generally be done by applying herbicides.

This Project is designed to provide clean, renewable energy for many years. Hydroelectric facilities in other places, built over a hundred years ago, are still in use today. Because of the expected long life of the Lower Churchill Project hydroelectric facilities and the refurbishment opportunities that exist, there are no plans to remove the generating facilities in the future.

16 Environmental Assessment

An environmental assessment is a process that is an important part of planning a project. Nalcor has used the environmental assessment to do three things: • First, the environmental and engineering studies that were done for the environmental assessment were used to make the Project better and minimize its negative impacts on the environment. Nalcor Energy is committed to making sure the Project can be done without causing serious harm to the environment. For example, much information about fish was collected, and it has been used to understand what the effects of the Project will be on fish. The plans to maintain fish habitat have depended on this information. • The second important use of the environmental assessment is to involve people who could be affected by the Project. By talking to people, Nalcor Energy has learned about individual and community concerns and has been able to build better relationships with the people who have an interest in the Project. • The third purpose of the environmental assessment is to provide information to the people who will be making decisions about whether the Project should proceed. This information is provided in the Environmental Impact Statement. This is a regulatory requirement, and the government authorities that make decisions about the Project must follow the laws that provide directions on how the environmental assessment is to be done.

17 Environment Assessment

The environmental assessment process is made up of the following steps: • Registration: the Registration document was prepared by Nalcor in November 2006. It describes the plans for the Project, and was submitted to the provincial and federal governments and was made available for public review. The information in the document and comments from the public were used by the governments to decide that the Project should be reviewed by a Joint Review Panel. The Registration Document is available at: http://www.ceaa.gc.ca/050/document-eng.cfm?document=38740 • Environmental Impact Statement Guidelines: The draft Environmental Impact Statement Guidelines were prepared by the governments in December 2007, following consultation with the public. Based on this consultation they were finalized in July 2008. The Guidelines provided instruction to Nalcor about the contents required in the Environmental Impact Statement. The Environmental Impact Statement Guidelines are available at: http://www.ceaa.gc.ca/050/documents/28050/28050E.pdf • Environmental Impact Statement: Nalcor prepared the Environmental Impact Statement, which was submitted to the Joint Review Panel in February 2009. This submission, which also includes a number of other reports, was made available for public review. These reports are available at: http://www.ceaa.gc.ca/050/05/documents-eng.cfm?evaluation=26178&type=9 • Information Requests: The Joint Review Panel asked stakeholders, including government agencies and Aboriginal groups, if they had questions or wanted more information than was available in the Environmental Impact Statement. The Joint Review Panel used those responses to come up with Information Requests which were provided to Nalcor. Nalcor has responded to those questions. Responses are available to the public at: http://www.ceaa.gc.ca/050/05/documents-eng.cfm?evaluation=26178&type=4

18 Environmental Assessment

• Hearings: Once the Joint Review Panel is Project Registration / Description satisfied that it has enough information, it Provincial and Federal EA processes will schedule hearings. At the hearings, the Government and public and government agencies will have Public Review an opportunity to express their opinions about the Project. The Joint Review Panel Decision on EA Requirements will take all the information that has been submitted, including what people have said at the hearings, to make a recommendation to government ministers. Draft EA Guidelines issued for Public Review • Decision: Ministers of the provincial and federal governments will consider the Government and Public Review recommendations of the Joint Review Panel, and make a decision about whether Final EA Guidelines Issued the Project may proceed. • Permits and approvals: If the ministers decide that the Project may proceed, Nalcor will still be required to obtain numerous EIS Submitted by Nalcor Energy permits, approvals and authorizations before constructing and operating the Government and Project. Public Review • Monitoring and follow-up: Monitoring will EA Public Hearings be required as a condition of a number of the permits, approvals and authorizations. In addition, Nalcor has committed to do follow-up to find out if the Environmental EA Panel Report Impact Statement correctly predicted the effects of the Project.

Ministers Decision

19 Natural and Human Environment Today

The existing conditions of the project area have been studied in great detail over the last 30 years. Both the natural environment and the human environment are examined to ensure that there is a good understanding of the current conditions and to identify ways that the project can minimize harm and maximize benefits.

The natural environment is looked at in terms of climate, the river, plants and wildlife. The human environment is looked at in terms of economic development, adjacent communities, land and resource use and cultural and heritage resources.

Climate The lower Churchill River valley is an area where About the same total amount of the weather changes frequently. In the fall, precipitation (the amount of water) winter and spring, strong winds, heavy snowfall falls at Churchill Falls and Happy Valley- and rainfall are common. Winters are cold and Goose Bay each year (about 925 to summers are pleasant but short, with the interior 949 mm), but the amount that falls of Labrador experiencing particularly warm summer as snow compared to the amount temperatures. The first frost of the season usually that falls as rain varies from one happens in early September, and snow usually place to another. For example, stays on the ground until late April or May. snowfall comprises about: • 48 percent of precipitation in Churchill Falls is located in the upper part of the the Upper area; Churchill River watershed. Between 1971 and • 40 percent in the Gull Island 2000, the average daily temperatures ranged Rapids area; and • 50 percent at Churchill Falls.

20 Natural and Human Environment Today

from -22.3°C in January to 18.5°C in July. The most extreme recorded temperatures were -45.6°C and 33.4°C.

Happy Valley-Goose Bay is located at the lower end of the watershed. Between 1971 and 2000, the average daily temperatures ranged from -18°C in January to 15.4°C in July. The most extreme recorded temperatures were -39.4°C and 37.8°C.

The River The Project is located in the Churchill River watershed in Central Labrador. The Churchill River flows from the at the western and upper end of the watershed to Lake Melville at the eastern and lower end of the watershed. Water from Lake Melville flows into the Labrador Sea. Water is held in the Smallwood Reservoir and directed through the power station at Churchill Falls when it is required to generate power. Because of this regulated flow, the Churchill River does not have the same seasonal changes in water levels as rivers that do not have regulated flows.

Most of the Churchill River flows over bedrock, boulders and rubble, with occasional beds of gravel and finer material. It is generally moderate to steep (for a large river), except along the deep and narrow Winokapau Lake. The shoreline shows the effects of ice washing along the edge during the spring, and this scrapes away most vegetation, leaving a bare area that has only a few grasses and shrubs.

Downstream of the place where the Minipi River joins the Churchill River, the river valley changes and the river turns into a braided, wandering channel downstream of Muskrat Falls.

Twenty-two different types of fish live in the Lake Melville area, with 17 of those found in the Churchill River upstream of Muskrat Falls. These fish include longnose sucker, white sucker, lake whitefish (normal and dwarf forms), brook trout, ouananiche and northern pike and others.

21 Natural and Human Environment Today

Plants The lower Churchill River valley where the Project will be located is covered mostly by black spruce forests. Wetlands and shrubby meadows are relatively common, and small amounts of spruce, balsam fir and aspen/birch forests are also present.

Wildlife Caribou is an important wildlife resource in Labrador because it provides food, cultural, recreational and economic benefits. There are two herds found near the Project. The herd (about 296,000 animals) is migratory, with a range of over 900,000 square kilometres in Labrador and northern Québec. In recent years, part of this herd has wintered within the lower Churchill River valley near Winokapau Lake. The Red Wine Mountains herd is much smaller, with a population of less than 100 animals in 2003. Because there are so few animals in this herd, and it has been getting smaller, it is considered “threatened” by the Species at Risk Act.

Other large animals in Labrador include moose, which gathers in the lower Churchill River valley during winter, and black bear, which is the largest predator in the watershed. A variety of smaller animals also live in the valley, including wolf, coyote, lynx, marten, river otter, beaver and porcupine. A variety of mice, voles, shrews and squirrels are common.

Many types of birds live in the Churchill River valley. Some live in the area year-round, but most are migratory and fly south for the winter. Spruce grouse, ruffed grouse, willow ptarmigan and rock partridge are year-round residents.

22 Natural and Human Environment Today

Economic Development Recent developments in the region include construction of the Churchill Falls Power Station and mining at Labrador City. These projects brought substantial economic benefits to the region and the Province. The Trans Labrador Highway Phase I improved access into the interior, which has further affected the nature and intensity of land and resource use in the lower Churchill River valley. In 1996, a Regional Government Service Centre was established in Happy Valley-Goose Bay, serving as a hub for government services in central and northern Labrador, and creating jobs for the town’s residents. Most recently, the Voisey’s Bay Mine/Mill Project on the Labrador north coast near Nain has brought considerable business and employment opportunities to Labrador.

Adjacent Communities There are four communities in the Upper Lake Melville area, where most of the Project’s social effects are expected to occur: Happy Valley-Goose Bay, North West River, Sheshatshiu and Mud Lake. In 2006, the population of these communities was about 9,100 people. Most (about 7,600) lived in Happy Valley-Goose Bay.

Happy Valley-Goose Bay is located at the mouth of the Churchill River. It has a population of about 7,500 people and is the largest community in Labrador. It provides government, health and post-secondary education facilities for the region. The economy traditionally has been related to the military base around which the community developed. The base, now known as 5 Wing Goose Bay, has been the primary employer in the Upper Lake Melville area since the 1940s and continues to play a major role in the regional economy. The Happy Valley-Goose Bay economy is primarily wage-based but many area residents, particularly in the smaller communities of the Upper lake Melville area, continue to pursue subsistence land use activities for cultural reasons and to supplement their income.

23 Natural and Human Environment Today

Mud Lake, North West River and Sheshatshiu are located close to Happy Valley- Goose Bay, and have a combined population of about 1,600. Government services, including health care, education and social services, are the main employers of the residents of these communities, many of whom work in Happy Valley-Goose Bay.

Churchill Falls is located about 300 kilometres west of Happy Valley-Goose Bay. The community is operated by, and most of the residents are employed by, Nalcor Energy-Churchill Falls. Although there is a small service sector, the Churchill Falls Power Station is at the centre of the community’s economy.

Land and Resource Use Land and resource use throughout the region includes hunting and trapping, fishing, wood harvesting, berry picking, snowmobiling and boating. Both Aboriginal and non-Aboriginal people are active land and resource users. Residents of the Upper Lake Melville area and Churchill Falls generally focus their activity on the areas adjacent to the Trans Labrador Highway between Happy Valley-Goose Bay and Churchill Falls. For both Aboriginal and non-Aboriginal people in Central Labrador, land use activities

24 Natural and Human Environment Today

take place year round, including the use of cabins. There are currently 22 cabins identified along the lower Churchill River.

The tourism industry is an important land use, particularly in Central Labrador. The Central Labrador Economic Development Board reports that at least 25 percent of its businesses are tourism related. Tourism is expected to increase in the region, with the pending establishment of the proposed Mealy Mountains National Park.

Cultural and Heritage and Resources Project-related field studies identified 46 archaeological sites. They included sites from times before European contact, makeshift trappers’ cabins, campsites developed after European contact, and Hudson’s Bay Company trading posts.

In addition, there are two known sites of cultural and spiritual importance to the Innu. One is a rock knoll on the north side of Muskrat Falls, and the second is where the last shaking tent ceremony in Labrador and Quebec took place in the fall of 1969 on the south side of Churchill River near Upper Brook.

25 Effects of the Project on the Natural and Human Environment

Nalcor is committed to developing the Lower Churchill Hydroelectric Generation Project in a way that meets the needs of people today, without taking away opportunities for future generations. For the past 30 years, Nalcor has studied, designed and planned this Project to maximize the benefits and minimize the potentially harmful effects. Those who wrote the Environmental Impact Statement used this approach in considering the types and seriousness of effects that the Project could have on the environment. For example, studies were undertaken to understand how the Project could affect the populations of fish, plants and wildlife, and whether those effects would last a long time. The potential for the Project to contribute to the long-term economic strength of the Province was also considered.

Based on directions provided to Nalcor in the Environmental Impact Statement Guidelines and advice received during consultation, the Environmental Impact Statement and Information Responses considered the potential for the Project to affect selected things in the natural environment. A summary of the Project’s most important effects on the environment is provided in the following section.

26 Effectsf o the Project on the Natural and Human Environment

Climate • Greenhouse Gas: Greenhouse gases are substances released into the air when fossil fuels are burned or plant matter decomposes. Scientific studies show that the amount of greenhouse gases in the atmosphere is increasing, and that it could be causing changes in climate. During construction, the fuel burned by construction equipment and other vehicles will release greenhouse gases. When the reservoirs are flooded, the vegetation covered by water will decompose and then release some greenhouse gas. In comparison to other ways to generate electricity, the amount of greenhouse gases released by the Project will be quite low. In addition, the electricity generated by the Project may be used to replace electricity that is currently being generated by burning oil, gas or coal. If this happens, then there would be less greenhouse gas emissions overall because the other sources of electricity would be used less.

27 Effectsf o the Project on the Natural and Human Environment

• Air Quality: Changes in air quality as a result of the Project will only happen close to the construction sites and roads, and are not expected to be higher than the levels that the government has decided are acceptable. Once the Project is in operation, its effects on air quality will be very small – mostly related to things like workers driving to work. The most important effect of the Project on air quality will be from vehicle exhaust during construction. There may also be some dust caused by vehicle traffic and wind blowing across construction sites. Nalcor will ensure its Contractors and Sub contractors keep vehicles in good working order to reduce exhaust related pollution, and will use water at work sites and roads to keep dust down.

The River • Water Levels and Water Flows: Water levels in the Churchill River are already managed by the Churchill Falls Power Station. As a result, spring and summer flows are lower and winter flows are higher than those that occurred before the power station was built. Water is typically highest in May, and lowest in September. There will be a period during Project construction and reservoir filling when flows are affected, but after the power plants begin to operate, the amount that water levels change will be much the same as they are now.

28 Effectsf o the Project on the Natural and Human Environment

Water levels in both Gull Island Reservoir and Muskrat Falls Reservoir will not change much except for a brief period in the spring when more water will be drained from the reservoirs so there is room for the spring flood. Normal daily water level changes will be a few centimetres, and weekly changes may be as much as one metre in Gull Island Reservoir and 0.5 metres in Muskrat Falls Reservoir.

Downstream of Muskrat Falls, the water surface level will remain the same, but the river channel will become deeper over time. This will happen because sediment normally carried in the river will settle out in the new reservoirs.

• Ice Conditions: Much of the year large sections of the Churchill River is covered with ice. After the Project is built, ice conditions in some locations may be different. Nalcor Energy is currently working with scientists and the residents of Mud Lake to understand how changes in ice formations downstream of Muskrat Falls could affect the residents’ travel across the ice.

• Ashkui: Ashkui are areas of water which tend to remain open year-round. These sites are important for many types of wildlife such as otter, geese, and ducks. They are places where people hunt, and the Innu also use ashkui for drinking water and for fishing. Ashkui sites tend to be located where water flows are rough, such as where rivers join other rivers. When the reservoirs are filled, the location where tributaries join the lower Churchill will be changed. It is expected that ashkuis will continue to form, although at different locations than they do now.

29 Effectsf o the Project on the Natural and Human Environment

• Aquatic Vegetation: Aquatic vegetation are plants that grow in and near water. It is important because it provides habitat for fish and wildlife. In the Churchill River, it tends to grow where streams meet the river. When reservoirs are created vegetation will start to grow at new places where the streams join the reservoirs. It may take years before the streams and shorelines become completely adapted to the new area. Work will be done to promote the re-growth of vegetation.

• Bank Stability: When the reservoirs are filled, a new shoreline will be formed. Waves and ice movement cause the soil and vegetation along the new shoreline to erode, forming a new bank along the reservoir. Most of this will happen within the first few years after the reservoir is filled, and the new bank will develop more slowly for another 10 or 20 years.

• Fish and Fish Habitat: The amount of fish habitat will increase as a result of the creation of the reservoirs. The same types of fish will continue to be present but in different numbers. Fish populations will increase. The biggest effect on fish and fish habitat will happen during construction. However, while the Project is under construction and until the habitat in reservoirs becomes established, there are a number of things that could negatively affect fish and fish habitat. The generation facilities will destroy the habitat within the facilities’ footprint. Until the new banks along the shorelines of the reservoirs stabilize, they will be eroding into the water which could affect fish.

Nalcor is working with Fisheries and Oceans Canada (DFO) to develop a fish habitat compensation plan that will explain what Nalcor Energy will do to improve fish habitat.

30 Effectsf o the Project on the Natural and Human Environment

It is not expected that many fish will pass through the turbines in the powerhouse.

When the dams are built, the river upstream of the dams will become a reservoir, and ground that has not been underwater will be flooded. For a number of years after this happens, the soil will release mercury into the water and, for a while, fish will have more mercury in their bodies. Mercury levels in fish may increase for a period of time after the reservoirs are flooded. As a result, although surveys indicate that fishing and consumption levels are presently low, Health Canada may recommend that people limit their consumption of fish from the reservoirs. Nalcor will monitor mercury levels in fish, and consumption advisories will be set by Health Canada if required.

Plants Creation of the reservoir will flood 126 square kilometres of land. Vegetation will regrow naturally along the new shoreline. Because wetlands are important areas for some species, work will be done to establish new wetland areas.

The right-of-way required for the transmission lines from Muskrat Falls to Churchill Falls will change some forested habitat into meadow and shrub habitat. The need to keep the area under the transmission lines clear of vegetation will require periodic removal of trees and tall shrubs along the right-of-way.

Canada yew is a plant of particular interest to some Aboriginal groups. Many of the places where Canada yew grows in the Churchill River valley will be flooded by the reservoirs. Nalcor, in consultation with the Innu, will transplant yew from the area to be flooded into other areas where the Canada yew is likely to grow.

31 Effectsf o the Project on the Natural and Human Environment

Wildlife The Project is not predicted to have an overall effect on the population of moose, black bear, marten, beaver, porcupine, waterfowl, osprey, ruffed grouse, forest songbirds and Harlequin ducks in the region. Most of the effects on animals will be caused by the forest clearing required for the reservoirs, transmission line right-of-way, and the power generation sites. Animals will temporarily move away from the noise and presence of people at construction sites but will return once construction is completed. The loss of habitat resulting from the creation of the reservoirs is not expected to have an effect on the populations of the animals because the amount of habitat that will be lost is small when compared to the overall habitat that is available for the animals to use.

Caribou: Caribou are of particular concern for the people of the region, however the Project is not expected to have much, if any effect on caribou. During construction, caribou will likely avoid areas near the Project because of the extra activity of people and equipment in the area. Some of their habitat will be lost because of the reservoirs and other Project facilities, however, studies have shown that this loss of habitat is so small that it will not have an effect on the Caribou.

Red Wine Mountains Caribou: The Red Wine Mountains Caribou are of particular concern and are considered “threatened” by provincial and federal governments. While there may be some changes in the way the animals use the area, the reasons for their decline are related to predation and poaching, not habitat loss. Nalcor is an active participant in federal and provincial recovery planning and supports efforts to increase the health of the caribou populations in the region.

32 Effectsf o the Project on the Natural and Human Environment

Moose: Moose occur throughout the forested regions of Labrador, and the lower Churchill River valley provides wintering habitat. There may be a slight decline in moose numbers in the lower Churchill River valley during the construction period and for a few years after the reservoirs have been filled, but then there may be a slight increase as the moose are attracted to the new vegetation as it grows back.

Black Bear: Black bear live in a variety of habitats. The Project is not expected to change the number of black bear in the area. There will be a small loss of some black bear habitat, including denning areas, but the loss will be quite small relative to what is available to them, therefore there will not be a decline in their population as a result of the Project.

Beaver: Beaver are more common along the transmission line than in the river valley where the reservoirs will be located. The reservoirs will flood out some existing beaver habitat, but beaver will still occur throughout the lower Churchill River valley after the Project has been constructed.

Marten and Porcupine: Marten and porcupine live in the mature spruce and fir forests in the lower Churchill River valley. Some of these forests will be lost because of reservoir flooding, but a large amount of suitable habitat will remain so marten and porcupine populations will remain in the area.

33 Effectsf o the Project on the Natural and Human Environment

Birds: The greatest potential effect of the Project on many migratory or early nesting birds such as Canada goose is the change to ashkuis, which are used for spring staging when most other waterbodies are ice-covered. This is not expected to be a major problem, however, as it is likely that ashkuis will form at new locations, and the Churchill River is not the only open-water area in the region. The Churchill River itself is not a particularly important nesting location for waterfowl, which tend to prefer smaller streams (e.g., Harlequin duck) or ponds and wetlands (e.g., Canada goose, surf scoter).

Initially, the Project will reduce the amount of habitat available for ruffed grouse, which tend to be concentrated in the hardwood forests in the lower portions of the Churchill River valley. Over time, however, the Project will result in more of the habitat types preferred by ruffed grouse. Additional hardwood habitat will be created along the transmission line right-of-way and adjacent to the Muskrat Falls Reservoir.

Osprey nest in tall trees and on built structures such as power poles and artificial nesting platforms throughout the lower Churchill River watershed. Nalcor Energy will provide additional nesting platforms for osprey. This is expected to have a positive effect. Because ospreys are fish-eating birds, they will absorb mercury which

34 Effectsf o the Project on the Natural and Human Environment

is contained in the fish they eat. It is not expected that the amount of mercury consumed by the osprey will be enough to affect their health. However, Nalcor Energy will monitor the levels of mercury found in osprey feathers to confirm the predictions.

A number of types of sparrows use wetlands. The reservoirs will affect the riparian meadows used by these birds. The effects are not expected to be important to wetland sparrow populations, however, as this type of habitat occurs elsewhere in the Churchill River valley. Nalcor Energy plans to create new riparian habitat which, in a few years, will increase the area of habitat available to wetland sparrows.

Economic Development The Project will involve expenditures of more than $6 billion over a 10-year construction period. Most of these expenditures will occur within the region, resulting in substantial employment, business and other benefits.

The opportunities created by the Project will include employment and business for Aboriginal groups, women, visible minorities and persons with disabilities in the Project. A Project Diversity Plan will detail programs to support a respectful

Chris P. Sampon/ Government 35 Effectsf o the Project on the Natural and Human Environment

and diverse workplace. These programs will ensure the recruitment, training and employment equity of those groups. All contractors and sub contractors working on the Project will be required to implement the Project Diversity Plan and provide benefits reporting information.

In the long-term, the largest and most widely-spread economic and social benefit will result from power sales, which will make an important economic contribution to the province which will benefit all the people of the province.

Adjacent Communities The effects likely to happen in the adjacent communities include increased traffic through the airport at Happy Valley-Goose Bay, increased use of the port and Trans Labrador Highway to move people and supplies to the work camps, demand for commercial and industrial land in Happy Valley-Goose Bay, and a demand for housing. Local businesses may find that there is more competition for workers.

Because workers will be housed in camps at the work sites, Nalcor does not expect that a large number of people will move to these communities to work on the Project. This will reduce the types of impacts that happen to communities when a

36 Effectsf o the Project on the Natural and Human Environment

large number of people move to a community within a short period of time. So it is not expected that this will result in problems related to available housing, medical or social services availability in the Happy Valley-Goose Bay area.

Land and Resource Use Although the Project will result in local shifts in land and resource use patterns, activities will be able to continue at existing levels. Important positive environmental effects include better access for boats, better fishing, and a small increase in access to the area due to additional roads and docks. There will also be a loss of some wildlife habitat and hunting and trapping areas. The pattern and location of hunting, trapping and fishing activities will be altered because of the Project. Populations of fish and game species are expected to remain at levels that will continue to support harvesting activities, except Red Wine Mountains caribou, which are currently protected by hunting prohibition.

The Project will build or upgrade about 375 kilometres of temporary access road, mostly to provide access for reservoir clearing. Public use of these roads will be restricted. When the Project construction is complete, about 15 to 30 kilometres of road will remain. The rest will be flooded by the reservoir or will be rehabilitated. Access to the river will be protected, although in some places boat launches and portage routes may be modified. Ice formation on the reservoirs will be better for snowmobiling than it is today.

37 Effectsf o the Project on the Natural and Human Environment

While the reservoirs are being filled, there will be a low flow period which will affect the ability of Mud Lake residents to travel to Happy Valley-Goose Bay. Nalcor is working with the residents of Mud Lake to find an acceptable alternative means of transportation.

Of the 22 cabins identified along the lower Churchill River, 12 cabins will be permanently affected by the creation of the reservoir. Depending on their location, the other 10 cabins may be affected by noise during construction. Also, during operation the loss of rapids will change the view from these cabins.

The Project is expected to have a positive effect on the economy overall, including tourism.

Cultural and Heritage Resources Of the 46 historical and archaeological sites identified, 44 will be lost due to reservoir creation. These sites will be studied and the information recovered will be documented and preserved for educational purposes. The other two sites have already been excavated and preserved.

38 Monitoring and Follow-Up

The design of the Project includes plans to protect the environment, the communities and individuals that use the land. To make sure these plans are successful, Nalcor will have two core programs; monitoring and follow-up.

Nalcor has made many commitments about how it will protect the environment. Nalcor, along with various government agencies, will monitor the Project to make sure all commitments are fulfilled.

In the Environmental Impact Statement, the effects of the Project are predicted. Nalcor’s follow-up programs will measure the actual environmental effects of the Project and compare them to the predictions. This will also include evaluating the environmental protection plans to see that they are successful.

The monitoring and follow-up programs will continue throughout the life of the project. If the Project effects are different than predicted, these monitoring and follow-up programs will be changed to meet the original plan. The full details of these programs are being developed by Nalcor in consultation with government agencies and other stakeholders. Plans will be complete before construction.

39 Conclusions

The Churchill River is already the site of one of the most important hydroelectric generation projects in North America. The development of the Lower Churchill Generation Project will capture the remaining hydroelectric generation potential of the river. This is a renewable energy source which generates significant amounts of electricity without releasing significant amounts of greenhouse gases. The electricity generated from this Project will replace the need to supply the equivalent amount of electricity from oil, coal or natural gas fuelled power generation plants.

The Project has been designed and will be built so that serious environmental effects will be avoided, and so that positive environmental effects will be enhanced. It will provide long-term sustainable economic and social benefits. The Project will improve the lives and meet the needs of present generations, and cause no harm to the ability of future generations to meet their own needs.

While the Project will change some characteristics of the lower Churchill River valley, the types of fish, plants and animals in the area will not change. Nalcor will implement a number of measures to protect the environment. With these measures, changes in the populations of game species such as caribou, moose, black bear, waterfowl, furbearers, and other non-game species will be reduced.

Nalcor will do a number of things to prevent the Project from negatively affecting communities or individuals. Diversity will be promoted, access to training will be provided, individuals and businesses will have an opportunity to develop and grow.

The economic and employment benefits of the Project will be substantial. Project operations will provide an on-going revenue stream to the Province of Newfoundland and Labrador through the sale of electricity. This Project will provide a foundation of renewable energy for generations to come. 40

Hydro Place, 500 Columbus Drive P.O. Box 12800. St. John’s, NL A1B 0C9 Canada t. 709.737.1833 or 1.888.576.5454 f. 709.737.1985 e. [email protected] w. www.nalcorenergy.com